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Fixed deposits (FDs) are one of the most traditional and trusted investment options available today, particularly favored for their stability and predictability. Offered by banks and various financial institutions, FDs provide investors with higher interest rates than ordinary savings accounts. 

In this article, we delve into the importance of obtaining a Fixed Deposit Receipt an essential document that every investor should insist on after setting up their FD. We will explore the concept of fixed deposits, their features, benefits, eligibility criteria, and the crucial reasons for securing a fixed deposit receipt.

What are Fixed Deposits?

A fixed deposit is a financial instrument provided by banks or financial institutions where money is deposited for a specific period at a predetermined interest rate. Unlike savings accounts, where funds can be withdrawn at any time, money invested in fixed deposits is locked until the maturity date, unless the investor opts for premature withdrawal, which may involve a penalty. This makes FDs a safe choice for those looking to earn higher returns on idle funds without exposure to risks associated with other investment avenues.

Features of Fixed Deposits

  • Guaranteed Return: FDs offer fixed interest rates that do not fluctuate with market conditions, ensuring a guaranteed return at maturity.
  • Investment Period Flexibility: Investors can choose from a variety of tenures ranging from a few days to several years depending on their financial goals.
  • Interest Payout Options: FDs provide options for receiving interest payouts—monthly, quarterly, or annually, or the interest can be reinvested.
  • Loan Facility: Most banks offer loans against FDs up to 90% of the deposit amount at competitive interest rates.
  • Auto-Renewal: Investors can opt for automatic renewal of the deposit upon maturity, which helps in compounding the interest if not withdrawn.
  • Tax Benefits: Certain types of fixed deposits qualify for tax exemption under Section 80C of the Income Tax Act.

Benefits of Fixed Deposits

  • Safe Investment: FDs are considered one of the safest investment options with minimal risk of loss.
  • Higher Interest Rates: They generally offer higher interest rates compared to regular savings accounts.
  • Flexible Tenures: The flexibility to choose the term of investment helps investors align their financial planning with their goals.
  • Ease of Operation: Managing an FD is relatively straightforward without the need for active monitoring.
  • Loan Options: Access to funds through loans against FDs provides financial support in emergencies without breaking the deposit.

Eligibility for Fixed Deposits

  • Individuals: Any resident individual or minor through a guardian can open an FD account.
  • Hindu Undivided Families (HUFs): HUFs are eligible to open FDs in the name of the family.
  • Companies: Corporations, groups, and partnerships can invest in FDs.
  • Others: Societies, clubs, and trusts can also place their funds in fixed deposits.

Why You Should Insist on Getting a Fixed Deposit Receipt

  1. Proof of Investment: A fixed deposit receipt is your official proof of the investment, detailing the amount, tenure, interest rate, and maturity amount.
  2. Legal Documentation: In any dispute or clarification with the bank, your FD receipt serves as the primary document.
  3. Tax Purposes: For claiming tax deductions under Section 80C or for any tax-related documentation, an FD receipt is required.
  4. Loan Collateral: When applying for a loan against your FD, the receipt is needed to prove the existence of the deposit.
  5. Renewal and Withdrawal: It helps facilitate the processes of renewal or withdrawal upon maturity of the FD.
  6. Record Keeping: Keeping a financial record organised is essential for managing one’s investments, and having an FD receipt helps in maintaining these records.
  7. Ensuring Correct Details: The receipt helps verify that all details, such as the principal amount, tenure, interest rate, and maturity value, are correctly entered and agreed upon.
  8. Peace of Mind: Having a physical or digital copy of the FD receipt gives investors peace of mind knowing that their funds are securely invested.
  9. Nominee Information: The receipt also contains nominee information which is crucial in the event of the depositor’s death.
  10. Accountability: Holding a receipt ensures that the bank upholds its responsibility towards your deposit and adheres to the agreed terms.

Who can invest in a fixed deposit?

Fixed deposits (FDs) are a popular investment option offered by banks and financial institutions, known for providing a higher interest rate compared to savings accounts, with the safety of the capital. They are typically used by individuals looking for a low-risk investment option. Here’s a list of who can open a fixed deposit at the Bajaj Finance office:

  1. Individuals: Any adult with valid identification and address proof can open a fixed deposit account in their name. They can choose the term and the amount based on their financial goals.
  2. Minors: FDs can be opened by minors under the guardianship of their parents or legal guardians. The control of the FD generally transfers to the minor upon reaching majority age, depending on the institution’s policies.
  3. Senior Citizens: They often receive higher interest rates on fixed deposits compared to other depositors. This is designed to provide a more lucrative and stable income source for the elderly.
  4. Joint Account Holders: Two or more individuals can open a fixed deposit jointly. The terms of withdrawal or upon maturity can be set to either require all parties to sign or allow any one of the joint holders to transact, depending on how the account is set up.
  5. Companies, Firms, and Societies: Corporations, partnerships, clubs, societies, and other organisations can also invest in fixed deposits as a way to manage their liquidity and earn interest.
  6. Non-Resident Indians (NRIs): NRIs can also open fixed deposits at the Bajaj Finance office through specific types of accounts like NRO (Non-Resident Ordinary), NRE (Non-Resident External), and FCNR (Foreign Currency Non-Resident) accounts, depending on their needs and currency risks.

Fixed deposits offer a versatile saving tool suitable for a wide range of savers from various walks of life, providing a predetermined return on investment over a fixed period.


Fixed deposits offer a blend of safety, flexibility, and attractive returns, making them a favoured choice for conservative investors. The fixed deposit receipt is a critical component of this investment, ensuring that all aspects of the transaction are documented and transparent. 

By insisting on receiving a fixed deposit receipt, investors not only safeguard their investment but also ensure they have all necessary documentation for financial planning and potential disputes. Whether you visit a Bajaj Finance office or any other financial institution, make sure you leave with this important piece of paper in hand.

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